American Water's subsidiary California American Water has agreed to acquire the operating assets of the Fruitridge Vista Water for $20.75m.

A family owned Class B Water Utility, Fruitridge Vista is based in south Sacramento County and comes under the California Public Utilities Commission. It provides water to about 4,800 customers.

California American Water supplies water service to around 60,000 residences and businesses in the Sacramento region. In the California state, the number of customers it serves is 180,000.

Fruitridge Vista Water owner Robert Cook said: "The contract agreement is a step forward and secures long-term quality service for our customers."

Upon completion of the acquisition, the customers of Fruitridge Vista will be served by the water treatment and distribution operators of California American Water.

California American Water Northern California operations director Audie Foster said: "We are pleased to have entered into a contract and look forward to serving customers in the Fruitridge area.

"Our Parkway water system is just south of Fruitridge Vista so we know the area well. This acquisition will allow Fruitridge Vista customers to take advantage of our excellent conservation and customer service programs.”

The acquisition is subject to an approval the California Public Utilities Commission (CPUC).

Earlier in the month, American Water completed its previously announced acquisition of the New-Jersey based Shorelands Water Company for an undisclosed sum.

Shorelands Water delivers water services to over 11,000 customer accounts    in the Monmouth County.